Payroll Services Agreement

Business or Employer Name* , hereinafter referred to as “Client”, hereby engages and authorizes Pacific Northwest Tax Service, hereinafter referred to as “PNW Tax”, and its employees to perform the following payroll services: 

• Create account and enroll Client in OnPay Payroll Services by OnPay | Full-Service Online Payroll, HR and More
• Where required, submit applications to IRS and Oregon and other states, which will allow OnPay to pay payroll taxes directly through the IRS automated EFTPS and similar state tax payment systems.
• Receive and interpret Client payroll data.
• Enter Client payroll data into OnPay.
• Additional specialized payroll services Client may request such as:
  • Paycheck writing and mailing
  • Downloading Client Payroll data into QuickBooks
  • Preparing and submitting corrected W-2s
  •  Preparing and submitting specialized payroll reports or forms as agreed to between Client and PNW Tax.
• Utilize Client’s OnPay account to complete the following actions pertaining to Client payroll:
  • Prepare and submit federal Form 941 FICA and withholding reports on a quarterly basis
  • Prepare and submit federal Form 940 FUTA unemployment tax reports on an annual basis
  • Prepare and submit Forms W2 and W3 with the Social Security Administration on an annual basis
  • Prepare and submit Form OQ Oregon Combined Quarterly reports on a quarterly basis
  • Prepare and submit WR Oregon Annual Withholding Tax Reconciliation Report
  • Prepare and submit Oregon Report for new hiring
  • Prepare and file payroll reports and tax submissions for other states for Client as required
  • Provide copies of payroll reports and tax reporting forms to Client

Submission of payroll data
Client shall submit written payroll requests to Pacific Northwest Tax Service by one of the following methods:

1. Completing a payroll spreadsheet which is shared through Microsoft OneDrive
2. Uploading required payroll information to the Client’s secure portal at https://pnwtax.securefilepro.com/portal/#/login
3. Email at: payroll@pnwtax.com
4. Fax at 503-350-0265 

Due date for submission of payroll data
Client shall submit payroll data to PNW Tax along with written notification of the submission to Payroll@pnwtax.com, at least 3 business days prior to the desired pay date.
 
Client acknowledges that payment via direct deposit to employee bank accounts requires that data be entered into the OnPay system at least 2 business days prior to the desired deposit date.    Authorized Signature*   

Payroll data required
To ensure accurate payroll reporting, Client payroll requests shall include the following information:

1. Name, RTN and account number of bank account used to issue payroll.
2. form most recent two months, copies of bank statements for account used for payroll.
3. Completed IRS and state forms W-4 for each new employee hired. Employees can submit Form W-4 information through OnPay, via their employee user account.
4. Date pay period ends
5. Date paycheck is to be issued
6. Name of employee being paid
7. Rate of pay that applies
8. Type of pay that applies – such as

• Regular hours
• Overtime hours*
• Tips
• Vacation
• Salary
• Sick pay 

*Overtime is mandatory under state law for all time worked in a single week that exceeds 40 hours. Overtime may not be reduced by averaging, comp time or other methods. Overtime must be separately stated from regular payroll.

Payroll spreadsheet
PNW Tax shall provide Client with a payroll spreadsheet that may be used to provide payroll data for each payroll request. You can access the payroll spreadsheet and other payroll related forms on our website at Payroll and Bookkeeping Services Forms | Pacific Northwest Tax Service (pnwtax.com)

Payment of Payroll Taxes & Filing of Payroll Reporting Documents
Services provided by OnPay include but are not limited to:

1. Collection and payment of federal and state payroll taxes from Client's designated financial account.
2. Preparation and filing of required payroll reports, forms and W-2s.

OnPay tax filing and payment systems are automatic, provided Client's account with OnPay is current and funds are available in Client's linked financial accounts. Client is responsible for ensuring funds are available to pay tax and withholding obligations to IRS, state agencies and OnPay's ongoing monthly subscription services fee.

Scope of Services and Exclusions
PNW Tax payroll services are offered as an additional service for our tax return clients. Client agrees to engage PNW Tax to prepare its tax returns and agrees to terms and conditions described in the tax organizers found on our website at Tax Organizers | Pacific Northwest Tax Service (pnwtax.com) Payroll services are not offered as a stand-alone service and will be discontinued should client chose not to engage PNW Tax to prepare its tax returns.

PNW Tax payroll services are limited to:

1. Interpreting payroll data provided by Client and entering it into OnPay.
2. Answering questions about payroll laws and regulations.
3. Advising Client on payroll tax reporting requirements.
4. Preparing specialized payroll forms and reports that cannot be prepared or filed within OnPay.

Client agrees that PNW Tax is not responsible for any penalties or interest imposed on Client which arise from late filing of payroll reports or late payment of payroll taxes. Liability for late payment of tax or late filing of tax reporting forms is the responsibility of Client and OnPay. Please review OnPay Terms and Conditions for further information.

Explanation of Billed Services
PNW Tax shall provide Client with an Explanation of Billed Services which shall include the following information:
o  Dates and times services were provided by PNW Tax.      
o  Description of services performed.
 
Explanation of Billed Services shall be emailed to Client at the following email address:   
Client email address for billing data reporting*   

Authorization and Payment of Payroll Retainer for onboarding and setting up of payroll account
Please select the amount of the retainer you authorize PNW Tax to charge at this time:   
     $500.00 Simple/Average 0-24 employees   $1,000.00 Complex 25+ employees*       
 
Renewal of retainer for monthly services ( amount to be determined later by payroll clerk)
   
To avoid interruption to payroll services, Client authorizes PNW Tax to automatically charge your credit/ debit card for the retainer on the first day of the month.

Client, sign below to confirm your understanding that your payroll clerk will automatically charge you a monthly retainer for bookkeeping services on the first day of the month, otherwise, services shall cease until such time as the retainer is renewed.

Signature   
   
Stop-Work Provision
PNW Tax shall cease to provide payroll services to Client in the following situations:
1.    PNW Tax payroll retainer is not paid in full by the first of the month,
2.    OnPay subscription is canceled or otherwise dropped, or
3.    Client engages in illegal activities.

OnPay Subscription Fees
OnPay will automatically debit the company bank account for payment of payroll taxes and monthly subscription fees.